The shadow economy accounts for almost 10% of national income

4 Jun 2013

Mark Littlewood appears on BBC Radio 5 Live

Mark Littlewood discussed a new IEA report on the shadow economy on BBC Radio 5 Live's Wake Up to Money programme.

The new IEA report measures the growth of the shadow economy as accounting for almost £150bn in the UK. The research suggests that if this economic activity was properly taxed, HRMC would receive almost £50bn in new revenue. Mr Littlewood argued that the government should encourage people to move into the legitimate market by lowering the tax rate and granting amnesty from back taxes to those looking to formalise their business arrangements.